High Desert Gold Corporation
TSX VENTURE : HDG
OTCQX : HDGCF

High Desert Gold Corporation

May 11, 2011 09:53 ET

High Desert Gold Reports Drilling Results at San Antonio Gold Project, Sonora, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 11, 2011) - High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:HDG)(OTCQX:HDGCF) announces the drilling results from the Company's gold-silver San Antonio Project in Sonora State, Mexico. An 11 hole RC (reverse circulation) drill program was completed in March of this year. The purpose of the program was to evaluate mineralization in an historic "cut" (trench) on the property and to complete reconnaissance holes in other parts of the large, 4,230 hectare property from which geochemically anomalous surface gold-silver and base metal samples have been collected.

The best drill hole, SA 11-04, intersected the down-dip projection of the strong mineralization previously sampled in the historic cut (see HDG PR 10-10, May 19, 2010). The intersection which is approximately 30 metres down-dip from the trench included:

From mTo mcum mGold g/tSilver g/tCu ppmPb ppmZn ppm
0.025.825.81.39411.13131,4681,370
including
13.724.310.63.02922.36673,2002,613
Which includes
19.824.34.65.72224.41,1461,7831,896
These intercepts represent approximate true thicknesses for the mineralized horizon

This mineralization is very consistent with the average grade obtained from the un-leached pile of mineralization that had been excavated from the cut (previously reported, HDG PR11-03, February 10, 2011) which averaged 3.1 g/t gold. The mineralization is hosted within a carbonate rich, heavily pyritized, partially silicified sandstone. The top of the higher grade mineralization is cut off by a low angle, approximately bedding parallel fault and the base of the mineralization bottoms at the interface with the underlying coarser sandstone-conglomerate unit. There appears to be good potential to follow this skarn-replacement mineralization to depth down-dip and along strike on the down-dip side of the trench. In this round of drilling, no other drill holes were placed on this potential down-dip extension, because all outcrop is covered with later volcanics.

Ralph Fitch, President and CEO, stated, "This intercept significantly helps us in understanding the distribution of the higher grade mineralization at San Antonio, and with gold selling at over US$40 a gram, a 3 g/t gold intercept becomes a very interesting target."

The up-dip mineralization in the cut within the same rock unit as seen in drill hole SA 11-04 included values such as these shown in the table below:

SampleLength in mGold g/tSilver g/tCu ppmPb ppmZn ppm
433691.562.39271.62,293>10,0002,569
73954*1.210070.51,0857,4404,280
73955*0.918.349180945,8002,270
73956*Grab sample14.0581.11314,840307
433721.50.878.35991,0551,864
420321.112.141.468217,6001,306
122454*2.423.725.215615,600461
* Previously reported in HDG PR10-10, May 19, 2010

Holes placed on the up-dip side of the trench intersected different rocks (stratigraphy) due to a high angle fault parallel to the length of the trench, which offsets the carbonate rich sandstone that hosts the mineralization described above in hole SA 11-04.

Drill hole SA 11-03 was drilled from the other side (North East) of the trench and intersected interesting mineralization in the breccia and fault system that extends the length of the trench, but did not intersect the mineralized carbonate unit seen in SA 11-04. Results included:

From mTo mcum mGold g/tSilver g/tCu ppmPb ppmZn ppm
19.850.230.40.4634.2735621,190
Including
36.545.69.11.1216.61248951,826
The true width of this mineralization is not known

The mineralization intersected in this 11 hole drill program is interpreted as gold-silver plus base metal mineralization of the skarn-replacement type related to a large intrusion that is interpreted to occur at depth below the property. For example, drill hole SA 11-08, located approximately 700 metres to the NE of SA 11-04, intersected anomalous gold mineralization (0.22 g/t) over 16.7 metres within partially brecciated and silicified limestone and sandstone. Base metal values included 220 ppm copper, 984 ppm lead (high value 0.5%) and 526 ppm zinc (high value 0.3%). Most of the other holes include short intervals of precious and base metal mineralization, such as SA 11-6 which ended in 3 metres of 39.5 g/t silver with anomalous base metals. In addition, drill hole SA 11-04 bottomed in elevated tungsten values, with the final 1.5 meters of the hole (191.5-193 metres) returning a value of 0.124% tungsten. These values may be a reflection of a deeper skarn system that drill hole SA 11-04 was starting to penetrate.

The plan going forward will be to interpret these multi-element results, to locate both the centres of precious metal mineralization on the property and the "potentially mineralized" intrusion that is interpreted to underlie parts of the property.

The Qualified Person on the San Antonio property is Randall Moore, Executive Vice President of Exploration of High Desert Gold Corporation and he has reviewed and approved the content of this press release. Assays were performed by ALS Chemex ("ALS") which is an ISO 9001:2000 certified laboratory. Gold was analyzed by the Au-AA23 method, with values >10 gpt re-assayed using Au- GRA21 All other elements were analyzed by the ME-MS41 method, and by Inspectorate Laboratories, an ISO 9001:2000 Certified laboratory. Gold was analyzed by fire assay of a 30 g sample with an AA finish.

There has been insufficient exploration to define a mineral resource at San Antonio and it is uncertain if further exploration will result in the targets at the project being delineated as a mineral resource.

Gold Springs Update:

The Company also provides the following update regarding its flagship Gold Springs gold property that is located along the Utah-Nevada border.

  • The ZTEM airborne geophysical survey (see HDG PR11-05, April 12, 2011) has been completed and results are expected within a month.
  • Two orientated diamond drill holes have been completed, one on the Jumbo Zone on the Utah side of the property and one on the Silica Hill target on the Nevada side. Results are expected in approximately one month.
  • A 30 hole RC drill program is expected to start in late May and will focus on targets on the Nevada side of the property position.

Cautionary Statement

Certain statements contained herein constitute "forward-looking statements". Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans", "estimates", "will", "expects", "targeting", "potential", "interpretation" and similar expressions. These statements include, but are not limited to, statements regarding the mineralization at and continued advancement of the San Antonio and Gold Springs properties. In addition, information concerning the interpretation of drilling and chip sample results and of geology may be considered forward-looking statements, as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, the availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; changes in project parameters as plans continue to be refined and other risks more fully described in the Company's Management Discussion & Analysis of Financial Position and Results of Operations filed and publicly available on SEDAR at www.sedar.com. The material assumptions that were applied in making the forward looking statements in this MD&A include: execution of the Company's existing plans or exploration programs for the San Antonio and Gold Springs properties, either of which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs; and the accuracy of current interpretation of drill and other exploration results. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Except as required by law, HDG assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

ABOUT HIGH DESERT GOLD

The Company is a mineral exploration company that acquires and explores mineral properties, primarily gold, copper and silver, in North America. The major properties held by HDG are the Gold Springs gold project situated along the border between Utah and Nevada and the San Antonio project in Sonora, Mexico.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • High Desert Gold Corporation
    Richard Doran
    Executive Vice President
    (303) 584-0608
    (303) 758-2063 (FAX)
    rdoran@hdggold.com